Why You Need Health Insurance – Understanding the Importance of Health and Medical Insurance

Why is having health or medical insurance so important? There is certainly a misconception that medical insurance is only for the elderly and older folks. Many young adults and even some middle aged adults have this misconception that since they are still healthy and without any illness, they do not need this security blanket that a health insurance policy provides. Their argument is that the premiums are high and that they are not getting anything in return if they do not make use of the policy.

Perhaps, these people are ignorant or have not heard or read of young and healthy people who without any warning, suffer a health attack or succumb to cancer. This is not surprising considering the hectic lifestyle and the regular intake of unhealthy food in this fast moving world that we live in. In addition, unforeseen accidents, minor or major can happen anytime. Breaking an arm or a leg can happen anytime while playing basketball or football. In the tropics, many people young and old falls victims to dengue due to mosquito bites. Considering the rising cost of medical care, hospitalization, surgery and medicines, a visit to the hospitals for treatment can indeed set back your hard earned savings if you are not covered under a health insurance plan.

A well meaning financial planner will advise that a financial plan which would include managing your investment risks will not be complete without a comprehensive health and medical insurance policy with critical illness coverage and hospitalization and surgical (H&S) coverage. Indeed, a financial investment plan can be derail if one should suffer the tragedy of succumbing to any life threatening illness such as cancer, diabetes, etc causing the person to lose his job and income before the financial goal of his investment plan materialize. The cost of treatment which may be exorbitant from the hospital expenses and surgery needed would cause you to use up the emergency funds and in the worst scenario may require you to withdraw from investment program before it mature if a medical policy was not purchased earlier. One should realize that hospital treatment cost these days include not only surgery and medication but often diagnostic tests involving sophisticated equipments, physiotherapy, etc. hence, the rising exorbitant cost of medical treatment.

One reason why many people do not purchase a health and medical insurance is due to the opinion that their employers have already provided the medical coverage. They may not be aware that once they leave their company, the coverage will cease. Hence, they may be caught in a bind if they are terminated during an economic downturn. Premiums for this kind of policy are lower if you purchase coverage at a younger age and when you are still medically fit. Those who insure themselves when they are older and not medically fit may have to pay higher premiums or are subjected to certain exclusions. Older folks and those who have some form of illness will therefore find themselves in a very precarious position if they are terminated from their job and are without medical insurance.

In summary, having a health and medical insurance is important as a security blanket that you need to buy but hope never to have to use. A health plan will give you the necessary assurance that you have the finances when the need arises.

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